Few Could Explain Yesterday’s Sell-off
The main concern about yesterday’s sell-off is that few could explain why it occurred. Ideally I like to see specific reasons for nervousness (concern about a specific event) as opposed to random ramblings (“valuations are too high”, “too many IPO’s”). Markets have large declines for specific reasons and we’ll likely soon learn why yesterday did what it did.
Overall the market is oversold but not too any great degree. Tuesdays and Wednesdays rally took the market into overbought territory and all yesterday did was pullback from that overbought territory. Another down day today though will trigger some good signals, especially in the US indexes.
Today’s Potential Opportunities on Further Pullbacks:
ETFs: